Should You Buy or Sell a “For Sale By Owner” Home? Don’t Make Any Moves Without Reading These Advantages and Disadvantages

Early spring is a popular time for buying homes. If you’re thinking about listing your home as for sale by owner, you need to be aware of the positive aspects, and the downsides. Most FSBO’s are listed by homeowners who don’t want to pay commission to a realtor. This is the largest reason by far. Be sure to focus on the actual appraised value of your home rather than just a number you’d like to get for it. That number means nothing if your home stays on the market for a long time because you’ve overpriced it. Read: Avoid the Potential Pitfalls of Selling Your Home Alone – Chicago Tribune.

As mentioned above, the most attractive reason to sell the home by yourself is not having to pay commission to a realtor. You get to choose when you want to show your home, negotiate deals with the buyer on your own, and choose the list price by yourself. going to be walking people through at any time throughout the day so you’ll always have to be ready for buyers to traipse through your home.

You know your home better than anyone else, so during showings, no information about the home will be left out. Realtors can’t remember everything, and they don’t know about all of the small details on your home. Some great advertising ideas are to put a sign on your lawn, or list ads in the newspaper. One non-negotiable place to advertise is on websites like Trulia, Zillow, and Rent.com. These are the sites were most buyers look on. You must put your listing on them. See: Mistakes to Avoid When Selling Your Own Home – The WallStreet Journal

There will always be a risk of having to sell your home for less than its work. Statistically, for sale by owner homes sell for less than sellers who list with realtors. Another downside is that while there are lots of outlets for you to advertise your house, only realtors can list homes on the MLS, which is one of the biggest online tools real estate agents use. Realtors have more experience in promoting homes through ads, signs and other methods.

You must understand that preparing all legal forms and disclosures etc. is your responsibility. It is essential to study and know all of the guidelines and requirements, because you take the risk of financial and legal liability. You will absolutely need to dedicate the time to learn all about the process of selling a home, the market, and how to work with potential buyers.

People who may not be able to get the proper financing will seek out homes that are for sale by owner because they know most private sellers are pretty inexperienced. Expect to get many buyers who are simple house hopping, and aren’t very serious about buying a house. These are people that just want to explore their options, and they will waste a lot of your time. With a realtor, you can avoid a lot of these people.

Don’t let the downsides of selling your house alone stop you from trying. The most important factor is knowing how the process works. It is imperative that you prepare for the expected challenges, and know the legal ramifications. However, you are able to hire a real estate attorney who can help you; however, you can’t get around paying him.